CLDA supports the formation of strong independent state courier associations!
State associations exist in the following states:
Documentation on how to start a State Association
WHY start or become a member of a state association?
Our Business Model and Your Business Is In Jeopardy
Never before in the history of the customized logistics and delivery industry have we faced the number and variety of factions which threaten our very livelihoods. It is paramount, that as individual entrepreneurs and business owners, we join together to surmount the impending challenges from Federal and State Governments, from Insurance Companies, and from Labor Unions.
WHAT ARE THESE THREATS?
Threats to Our Use of Independent Contractors (ICs)
Roughly 80% of same-day ground deliveries in our nation are made by the myriad of Independently Owned and Operated Courier companies which, in turn, rely on tens of thousands of Independent Contractor Drivers. This proven business model allows us to conduct our successful operations, while providing both livelihoods to those ICs, as well as the overall contributions our combined efforts make to our local economies.
But our use of these ICs is now under fire on several fronts.
State Governments, looking for creative ways to bolster sagging revenue bases, are attempting to legislate the elimination of ICs from many business models. The mindset is that if they can force Courier Companies to make these IC’s actual “Employees,” by passing laws to outlaw ICs, they can then collect additional payroll taxes.
The same tactic is being considered at a Federal level, for collection of new and additional Federal taxes from your business.
Insurance Companies are also lobbying various legislators to outlaw the use of ICs as their own potential revenue stream. If your drivers were suddenly required, by law, to become your employees, then you, as the company owner would be responsible for insuring those drivers. In a pool of twenty drivers, for example, the insurance company could take the driver with the worst record, and base their rates for the entire company on that driver’s performance.
Labor Unions have long sought to increase their membership, and thus their collection of Union Dues by targeting ICs and the companies who use them. Under our current IC business model, they cannot approach our drivers with the goal of organizing them. Should laws be passed eliminating the IC business model and requiring those drivers to be hired as payroll employees, it would be open season for Labor Unions to attempt to organize those employees.
Collectively, or individually, these threats – from legislatures, insurance companies, or unions could devastate our industry as we know it. But there is a way to protect our right to the freedoms of Capitalism and the continued success of our day-today operations.
The CLDA leadership has been vigorously working to both educate and to lobby Congress about the importance of preserving the IC business model for the customized logistics and delivery industry. While we have met with some success, it is imperative that we garner more voices to bring the message to all of our elected officials at both the Federal and the State levels.
We need to make sure that our elected officials at the local, state, and national levels understand WHO we are, --how much of a demographic we represent, how much we bring to bear in taxes being collected, and consumables being consumed. Our elected leaders need to know we represent tens of thousands of votes nationwide, with our choice of voting and campaign contributions directly tied to how they vote on issues affecting our livelihood.
For years, the leadership of the CLDA has been working diligently to pursue these legislative goals in our nation’s capitol. But recent events have made it essential to now expand our efforts through business owners like you who must carry the torch at the local and state level.
A CLOSE CALL IN MARYLAND
The Maryland State Legislature became the first lawmaking body to vote to outlaw the use of Independent Contractors. Their original bill called for eliminating ICs in ALL areas of employment, from construction workers, from lawn services, and from same day courier companies. The CLDA reacted immediately by sending representatives to Maryland to vigorously fight this legislation before it could be finalized by the Governor. By educating Maryland lawmakers about the contributions of our industry and the importance of maintaining the IC model, the CLDA was able to have same day courier companies exempted from the potentially disastrous legislation.
THE CALL FOR CLDA STATE ASSOCIATIONS
In order to protect the IC model in your state, the CLDA is now pursuing the establishment of State Associations to work with local and state legislators. CLDA members in several states have been contacting fellow Same-Day Delivery operators to invite them to informational meetings to discuss the threats and challenges, and how they can be overcome. Our goal is to establish State Associations for the express purpose of building professional relationships with those local and state lawmakers who have the potential to so drastically affect our livelihoods.
GRASS ROOTS EFFORTS
In Florida, the first meeting of 18 CLDA members resulted in the call to reach out to other Same-Day Delivery operators across the Sunshine State. Many were competitors, and some, at first, were hesitant about gathering to network and share knowledge of their individual businesses. But once presented with the bigger picture, these business owners reached out, and the second meeting saw more than 60 participants working hand-in-hand to establish a Statewide Association. Collectively, they are building relationships with their local, state, and federal lawmakers to stay on top of potential changes in legislation, while educating those elected officials about the importance of preserving our business model.
“Many of the operators discovered their competitors could actually help them,” said Benko.
“They began asking one another, ‘How can we share resources?’ ‘How can we identify duplication of efforts?’ ‘–If I’m running in the same lane of traffic that you are on a daily basis… --I have a dispatcher. You have a dispatcher. I have a controller… you have a controller. I have a sales guy… you have a sales guy. Are there any economies of scale? –Can I share with you the good experiences and bad experiences for networking of people that I do business with?’”
The CLDA is now working to develop similar associations in all 50 states. For more information on how you can get involved, contact CLDA!